Brazil will use blockchain platform for sharing data between financial authorities

20 June 2018

Banco Central do Brasil (BCB) made an announcement this week about its plans to introduce by the year end a new data exchange platform based on the blockchain technology. The new platform dubbed Pier will help financial bodies of the country to interact with each other and share information in a decentralized and tamper-proof manner.

The institutions that will be linked by the new blockchain network will include such bodies as the Superintendency of Private Insurance (SUSEP), the Brazilian Securities and Exchange Commission (CVM) and National Superintendency of Complementary Pensions (PREVIC).

According to the official statement made by the Brazil central bank, the blockchain technology is credible as it provides a horizontal structure of information transfer and sharing, while the data stored on the network is immutable.

Pier will be used for sharing data relating to the process of authorization, as well as punitive procedures, administrator performance and oversight of corporate organization under the control of the central bank. The new platform is expected to remove the previous hierarchical structure of conventional business models, while enabling regulatory bodies to avoid centralized control of their communication. The new system is also aimed at ensuring tamper-proof nature of the data stored, because the platform records every query of information attaching cryptographic signatures to them.